SNAP – Market expectations are for Uniform ROA to expand to all-time highs, but management may have concerns about advertisement, monetization, and AR shopping

• Snap Inc. (SNAP:USA) currently trades at a historical high relative to Uniform assets, with a 31.8x Uniform P/B. At these levels, the market has bullish expectations for the firm, but management may have concerns about their advertising performance, Snap Map monetization, and progress on augmented reality (AR) shopping.
  
• Specifically, management may lack confidence in their ability to maintain higher eCPM and higher cost per action for their goal-based bidding products, capitalize on their strong community growth, and build the right content products. Also, they may be concerned about the impact of mobility restrictions on daily story posting activity, higher operating expenses, as well as increases in full-time headcount costs stemming from recent acquisitions. Furthermore, they may have concerns about Snap Map monetization, the Creator Fund initiative progress, and ongoing technical challenges regarding AR shopping. Moreover, they may lack confidence in their ability to continue investing in the Spotlight launch and use adjusted EBITDA leverage to further invest into the business. Finally, they may be concerned about their stock-based compensation strategy and the repercussions of the changes to the new iOS platform.